Fuel efficiency norms to be tightened as govt seeks to push automakers to make more electric vehicles

The government is set to tighten fuel efficiency norms for vehicles to push automobile manufacturers to expedite the conversion of conventional internal combustion engines (IECs) to electric vehicles (EVs). Sources said producing a certain share - about 4-6% - of their vehicles on electric mode will help them meet the tighter CO2 emission norms.Dipak K Dash&Surendra Singh | TNN | June 14, 2018, 09:01 IST

Highlights

The government is set to tighten fuel efficiency norms for vehicles to push automobile manufacturers to shift to electric vehicles,

Sources said producing a certain share (about 4-6%) of their vehicles on electric mode will help them meet tighter CO2 emission norms,

The transport ministry has mandated fuel efficiency norms that require cars to be 30% more fuel efficient by 2022,

New Delhi: The government is set to tighten fuel efficiency norms for vehicles to push automobile manufacturers to expedite the conversion of conventional internal combustion engines (IECs) to electric vehicles (EVs). Sources said producing a certain share - about 4-6% - of their vehicles on electric mode will help them meet the tighter CO2 emission norms.

In its report, a panel headed by road transport secretary Y S Malik has made this recommendation as a part of its 15-point strategy. Arguing for tighter targets, the report said, “To have approximate induction of 3 to 5% EVs, as against total manufactured vehicles, the fuel efficiency norms have to be lower by 20-25% over FY 2017-18 data. This approach has to be adopted for cars, three-wheeler and two-wheeler industry.”

The transport ministry has mandated fuel efficiency norms that require cars to be 30% more fuel efficient by 2022, which will reduce the CO2 emission.

To push supply of EVs and their components, the panel has recommended granting weighted deduction on the lines of deductions provided for investment in scientific research and development besides disincentivising imports by providing certain degree of protection to domestic manufacturing.

Meanwhile, Indian Space Research Organisation (Isro) has asked industrial houses to bid for transfer of its indigenously developed lithium-ion cell technology to set up production facilities in the country. Isro chief K Sivan told TOI that out of the four cells, it had allowed Automotive Research Association of India to use 50Ah and 100Ah cells for developing prototypes of an e-scooter and an e-car, which were found to be performing well for the prototypes.

The panel has also recommended that reduced margin money to buy EVs should be allowed for the first five years considering high cost of these vehicles. The report has suggested government explore low interest loan for buying EVs for public transport and taxi services.

The report has pitched for including EV charging infrastructure in building norms, parking areas since availability of charging facilities persuade people to go for. It has also suggested allowing the use of CSR fund for setting up of charging facilities besides giving preferential treatment for parking, less toll, exclusive entry to congested areas and wildlife reserves for EVs.

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The ongoing field development and EOR/IOR projects are expected to produce a cumulative of 54.6 million tonne (mt) of crude oil and 114 billion cubic meter (bcm) of natural gas in the next three to four years, the report said.